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This Week on The Compound
This Week on The Compound
This week on TCAF, Josh and Michael were joined by returning guest Katie Stockton, Founder and Managing Partner at Fairlead Strategies. They discussed the election's impact on the market, the explosion in financial stocks, reasons to be cautious, small caps vs the S&P, the benefit of technical analysis, and Bitcoin as a reserve currency. (Listen)
A Once in a Lifetime Investment Opportunity | Animal Spirits (Listen)
How Will the Election Impact Your Taxes? | Ask the Compound (Listen)
Post-Election Investing Ideas | Live From the Compound (Listen)
The Most Bullish Chart in the World | The Compound and Friends (Listen)
Why Your Portfolio Needs Guardrails | Jill on Money (Listen)
INSIDE THE COMPOUND
The stock market is increasingly open during the week. Investors and traders are getting constant feedback. Elections are different because they happen once every two or four years. So, our reactions are very naturally different. Ben Carlson wrote about how likely it is that there are market overreactions this week. Barry Ritholtz also wrote about some big-picture lessons from a surprising election season:
The media is much better at covering sports contests than elections, so the default methodology is to treat elections like games. Hence, the endless focus on the contest, and the lack of focus on issues.
The parallels to financial media are obvious: The focus is on the temporary and short-term rather than the more complex and long-term. Issues that are more challenging to cover and require expertise to explain are mostly ignored.
OUTSIDE THE COMPOUND
Prior TCAF guest Joe Fahmy launched a new podcast, and Josh is the inaugural guest. They discussed a range of topics including how Josh wrote his new book, the impact of the pandemic and the Fed’s response, how to make a great podcast, and a deep dive into the psychology of market pundits. Josh followed up on the challenge of one-hit market prognosticators.
There’s a very specific type of market commentator out there who revels in the misery of others because of his or her own dissatisfaction. This is typically a person who experienced the fame that comes along with having made a big negative call that’s played out. For the rest of their career they’re constantly in search of recreating that same euphoric feeling of being right while everyone else loses money. It’s like a drug and I have witnessed this yearning firsthand.
COMING SOON
This week on TCAF, Josh and Michael will be joined by returning guest Adam Parker, Founder, and Colin Cooney, Managing Director of Trivariate Research.
FEEDBACK
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